2023-05-10 13:00:44 ET
Summary
- Inari Medical, Inc. has several devices for venous thrombectomy like The FlowTriever and ClotTriever devices.
- Several ongoing clinical trials and increasing quarterly sales have the potential to continue the upside momentum for the stock price.
- Inari Medical is targeting a $5.8 billion/year U.S. market and is an attractive acquisition candidate.
Inari Medical, Inc. ( NARI ) was founded in 2011 and is based in Irvine, California. The company is focused on treating venous thromboembolism by thrombectomy.
The problem:
The currently approved thrombectomy devices are targeted at the arterial system. These devices cannot be optimally used for venous thromboembolism. Therefore, there is a lack of thrombectomy devices for venous thromboembolism. Clinicians have to use thrombolytic drugs for venous thromboembolism, which increases the risk of bleeding.
The company's solutions:
Inari Medical, Inc. has several approved medical devices. The company's FlowTriever system is the first mechanical thrombectomy device for treating pulmonary embolism. The device has shown the ability to eliminate ICU stay and has reduced the cost of hospitalization.
The second device in the company's portfolio is the ClotTriever system for treating deep venous thrombosis. The company's InThrill thrombectomy system consists of a thrombectomy catheter and a sheath and is designed for small venous thrombectomy. The company's Flowstasis suture retention device is designed to accomplish venous access site closure. The company's FlowSaver blood return system reduces blood loss when used with the FlowTriever system, thus enabling blood loss thrombectomy for pulmonary embolism.
The company is conducting active research for its portfolio devices, for example, FLAME trial studied the FlowTriever system for acute massive pulmonary embolism. The device has shown more than a 90% reduction in high-risk pulmonary embolism mortality and significantly lower in-hospital adverse outcomes.
The FLARE registry studied the efficacy and safety of the FlowTriever system in patients with acute intermediate-risk pulmonary embolism. The study was successful and showed a significant reduction in right heart strain, and shorter ICU and length of hospital stay compared to thrombolytic drugs.
The FLASH registry studied the efficacy and safety of the FlowTriever system in patients with intermediate-high or high-risk pulmonary embolism. The device showed immediate hemodynamic improvement as shown by a 23% reduction in the main pulmonary artery pressure, and total pulmonary vascular resistance.
The Cloud registry was the largest mechanical thrombectomy study that evaluated the ClotTriever system in deep venous thrombosis. The device showed more than 90% complete or near complete thrombus removal and freedom from thrombus symptoms at 30 days by 90%.
An ongoing clinical trial called PEERLESS is studying patients with intermediate-high and higher-risk pulmonary embolism, who have contraindications to the FlowTriever device.
An ongoing DEFIANCE clinical trial is studying ClotTriever device versus medical anticoagulation in deep venous thrombosis.
The company CEO Drew Hykes served as the VP of marketing at Medtronic and led the launch of Medtronic's (MDT) first drug-eluting coronary stent.
Financials and valuation:
Inari Medical, Inc. reported first-quarter 2023 financial results last week. Revenue was $116.2 million in Q1 2023 and increased by 33.9% annually. The company increased the annual revenue guidance by $8 million to $478 million-$488 million. Cash reserves were $328.4 million at the Q1 end. The cash is enough till at least the end of 2024.
The target market in U.S. venous thromboembolism including both pulmonary embolism and deep venous thrombosis is $5.8 billion/year and has a penetration of less than 6%. The target market in pulmonary embolism is $2.8 billion/year in the U.S. and $3 billion/year in deep venous thrombosis, so the company has enough room to grow its revenue.
Inari Medical, Inc. has several catalysts to continue the momentum of the stock price. Its portfolio has six major ongoing studies including two randomized clinical trials. The company management has shown good execution by launching 10 products in the past two years.
I expect Inari Medical, Inc.'s upside momentum to continue in the near term due to data releases from ongoing clinical trials in the near term. Considering the under-penetrated large target markets, the stock has the ability to be an attractive acquisition candidate.
YCharts
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Risks in the Inari Medical, Inc. investment include underwhelming data from the ongoing trials, side effects, quarterly reports, etc. Investing in biotech/pharma/medical devices stocks is risky and may not be suitable for all investors. This note represents my own opinion and is not professional investment advice.
For further details see:
Inari Medical: Targeting Underpenetrated $5.8 Billion Thromboembolism Market